Investment in service residences has wind in its sails!

Managed furnished rental is accessible to the investor who buys a property and gives it in furnished rental to a professional operator who will propose at least 3 of the 4 compulsory para-hotel services (reception, breakfast, cleaning, laundry).

Eligible residences are student residences, business or leisure residences, seniors residences and nursing homes for dependent persons ('EHPAD').

Major benefits: VAT recovery and non-taxed income!

Among the advantages of the furnished rental in the case of a property purchased new, one of the most appreciated ones is the VAT refund, ie 20% of the total amount of the investment. You recover this amount after your purchase and reinvest it as you wish.

Depreciation

Combined with the deduction of loan interest, it allows you to carry out a tax neutral transaction over a very long period (from 20 to 30 years): the value of the building and furniture is depreciated accounting wise - this depreciation cancels the rental income generated by the lease (which falls into the 'BIC' category). You therefore declare zero income and are therefore not taxed on the income received.

Censi-Bouvard ?

Your investment in service residences may be eligible for the Censi-Bouvard option. With this option, you cannot apply the accounting depreciation of the building. However, you are entitled to a tax reduction equal to 11% of the cost price of housing (excluding taxes, excluding furniture, limited to € 300,000) spread over 9 years from the year of the declaration of completion of works (or the year of acquisition if it is later), to the recovery of VAT (in return for the signature of a commercial lease with a professional operator) and to the tax regime of 'BIC'.

LMNP ou LMP ?

Let's say they are cousins!

The transition from one to the other depends, in particular, on the amount of rental income generated, compared to other household income and will impact the tax treatment of the income.

For more information, the easiest way is to talk about it together!

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